Shares of civil construction firm NCC fell to their 52-week low in early deals on Monday. NCC stock slipped 2.27% to Rs 182.65 today against the previous close of Rs 186.90. NCC stock is trading lower than the 10-day, 20-day, 30 day, 50-day, 100-day and 200-day moving averages. NCC shares have gained lost 28% in one year and fallen 34% since the beginning of this year. The stock has declined 43% in six months. Market cap of the firm stood at Rs 11,533 crore. Total 1.17 lakh shares of the firm changed hands amounting to turnover of Rs 2.16 crore on BSE.
In terms of technicals, the relative strength index (RSI) of NCC stands at 33.4, signaling neither the stock is overbought nor oversold. NCC stock has a one-year beta of 2.1, indicating very high volatility during the period.
Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala owned 6.67 crore shares or 10.63% stake in the firm at the end of the December 2024 quarter.
Jigar S Patel from Anand Rathi said, "Support will be at Rs 175 and resistance at Rs 198. A decisive move above the Rs 198 level may trigger a further upside of Rs 205. The expected trading range will be between Rs 175 and Rs 205 for the short-term."
Mandar Bhojane, Equity research Analyst, Choice Broking said, "NCC is currently trading around Rs 184 and remains in a clear downtrend, forming a series of lower highs and lower lows. The price action reflects significant selling pressure, keeping the bearish momentum intact. The stock is currently trading near its 52-week lows, indicating sustained weakness. Additionally, it has remained below the 20-day, 50-day, 100-day, and 200-day EMAs for an extended period, reinforcing the negative outlook. Immediate resistance is placed at Rs 212, followed by a stronger hurdle at Rs 235, aligning with the 50-day EMA. A breakout above these levels could provide some relief, but until then, the trend remains firmly bearish. On the downside, key support is located near Rs 175, and a breakdown below this level could accelerate selling pressure, potentially pushing the stock toward Rs 155. The Relative Strength Index (RSI) is currently at 32.89, reflecting strong bearish momentum and suggesting that selling pressure remains dominant. Despite occasional recovery attempts, NCC has struggled to gain traction, with no strong reversal signals at this stage. As long as the stock remains below key resistance levels and moving averages, the downtrend is expected to persist. Traders should monitor price action closely, as a decisive move below Rs 175 could open further downside potential, while only a sustained move above Rs 235 may indicate a possible reversal."
Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, "NCC has seen a sharp decline from its recent highs, currently trading at Rs 184.30. The stock remains in a downtrend, trading well below key resistance levels and major exponential moving averages (EMA 20/50/100/200). The RSI stands at 32.46, indicating oversold conditions but lacking confirmation of a reversal. MACD remains negative at -17.11, reinforcing weak momentum. The ADX at 45.33 suggests a strong prevailing trend, with DI- significantly above DI+, reflecting continued selling pressure."
"Despite a recent attempt to hold support near Rs 178-184, there are no clear reversal signals yet. The supertrend remains bearish, and resistance levels around Rs 204-212 could cap any short-term recovery. Given the current technical structure, NCC is in a 'no-trade zone,' requiring a wait-and-watch approach. A breakout above key resistance or a stronger reversal signal is needed before considering fresh positions. Traders should remain cautious for now, " added Ranadive.
Axis Securities has a price target of Rs 213 on NCC.
"The stock is trading at 15x/13x/10X its FY25E/FY26E/FY27E EPS respectively. We recommend a BUY rating on the stock with a target price of Rs 213 per share. As of 31st Dec’24, the company’s order book stood at Rs 55,548 cr across various segments, providing revenue visibility for the next 2-3 years. With its strong execution track record, the company is well-positioned for steady revenue growth. We expect it to achieve a CAGR of 14%/17%/23% in Revenue/EBITDA/APAT, respectively, over FY25E-27E," said Axis Securities in a report dated February 21.
AR Ramachandran, SEBI registered Independent analyst says, "NCC is sideways to bearish on the Daily charts with strong support at Rs 171. A Daily close above the resistance of Rs 199 could lead to a target of Rs 237 in the near term."
On February 12, ICICIDirect said it valued NCC at Rs 265 (vs. Rs 400, earlier), now valuing it at 12x FY27 (vs. 15x, earlier), and maintained its BUY rating on the stock
"The management has maintained order booking guidance of Rs 20,000 - Rs 22,000 crore for FY25. While management has refrained from guiding for FY26, given the robust orderbook and healthy pipeline, we expect healthy revenue CAGR of 12.7% over FY24-27E to Rs 26,228 crore, with growth recovery from FY26 onwards," said the brokerage.
IDBI Capital has downgraded its rating to hold on the Jhunjhunwala stock.
"We have downgraded our rating to HOLD, revising the target price to Rs 268, valued at 13x FY27E EPS. Q3FY25 order inflow stood at Rs 84 bn, with 9M FY25 inflow at Rs 136 bn. The company expects an additional order inflow of Rs 70-90 bn for FY25 and has an L1 pipeline of nearly Rs 90 bn. The key catalyst for the stock remains improvement in execution and stability in EBITDA margins," said the brokerage.
NCC Limited is engaged in construction/project activities in the infrastructure sector. The company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation, and hydrothermal power projects, real estate development.